⏱ 2 min read
A Texas laboratory, its former CEO, and a Florida businessman are at the center of a massive health care fraud scheme that involved paying kickbacks and billing Medicare and Medicaid for medically unnecessary genetic testing. Access DX Laboratory, based in Houston, Texas, along with former CEO Michael Stewart and Florida businessman Harold Shatz, were accused of running the scheme from January 2018 through January 2020. The alleged fraud wasted taxpayer dollars and undermined trust in the medical system.
The government’s investigation was sparked by a whistleblower complaint, which alleged that Access DX, Stewart, and Shatz paid kickbacks to marketers in return for referrals of patients for genetic testing. The lab also unbundled billing codes for genetic testing, further inflating the costs. As a result, the defendants will pay a combined total of $36.4 million to settle the allegations.
The settlement is a significant victory for the government, which has vowed to aggressively pursue any provider or entity that seeks to exploit federal programs through excessive billing and illegal kickbacks. U.S. Attorney Theodore S. Hertzberg noted that the settlement sends a clear message that such fraudulent schemes will not be tolerated.
The Department of Health and Human Services Office of Inspector General (HHS-OIG) also played a crucial role in the investigation, working with law enforcement partners to pursue health care fraud and protect Medicare, Medicaid, and the people who rely on them. Acting Deputy Inspector General for Investigations Miranda L. Bennett stated that kickbacks and medically unnecessary genetic testing schemes not only drain taxpayer-funded federal health care programs but also undermine the integrity of the U.S. health care system.
📋 Key Facts
- Crime: White Collar Crime
- Defendant: Texas
- Location: GA
- Source: DOJ Press Release
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